DEPUTY COMMISSIONER OF INCOME TAX,CIRCLE 3(1), Visakhapatnam V. VVR ENGINEERING, Visakhapatnam

ITA 236/VIZ/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 4978 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 27-11-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 13-09-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MDHUKAR AVES
• Keywords: Tax effect; Tax effect
• Section: 43B; 250

Judgement Text

आयकर अपीलȣयअͬधकरण, ͪवशाखापटणम पीठ, ͪवशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM Įी दुåवूǽ आर एल रेɬडी, ÛयाǓयक सदèय एवं Įी एस बालाकृçणन, लेखा सदèय के सम¢ BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ I.T.A. No.236/Viz/2023 (Ǔनधा[रण वष[ / Assessment Year :2020-21) Deputy Commissioner of Income Tax, Circle-3(1), Visakhapatnam. Vs. VVR Engineering, Visakhapatnam. PAN: AABFV 9797 L (अपीलाथȸ/ Appellant) (Ĥ×यथȸ/ Respondent) अपीलाथȸ कȧ ओर से/ Assessee by : Sri I. Kama Sastry, AR Ĥ×याथȸ कȧ ओर से / Revenue by : Sri Mdhukar Aves, Sr. AR सुनवाई कȧ तारȣख / Date of Hearing : 28/11/2023 घोषणा कȧ तारȣख/Date of Pronouncement : 29/11/2023 O R D E R PER S. BALAKRISHNAN, Accountant Member : This appeal is filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [Ld. CIT(A)-NFAC] dated 26/07/2023 passed U/s. 250 of the Income Tax Act, 1961 [the Act] for the AY 2020- 21. 2 2. The Revenue has raised the following grounds of appeal: “1. The order of the Ld. CIT(A) is erroneous both on facts and in l aw. 2. The order of the Ld. CIT(A) in del eting the addition of Rs, 4,61,671/- which is not al l o wabl e U/s. 36(1)(va) of the IT Act. 3. The Ld. CIT(A) erred in not observing the Board’s Circul ar No. 22/2015 date d 17/12/2015 wh erein the cl aim of deduction rel ating to empl oyee’s contribution to wel fare funds which are governed by section 36(1)(va) of the Act. 4. The Ld. CIT(A) erre d in not considering the amendment h ad been brought in Finance Act, 2021 that the del aye d payment canno t be al l o wed U/s. 43B of the Act. 5. The Ld. CIT(A) erre d in not taking into consideration the decision of the Hon’bl e Supreme Court in the case of Checkmate Se rvices (P) Ltd vs. CIT in Ci vil Appeal No. 2833 of 2016, wherein it was hel d that it is an essential condition, for cl aiming of deduction of employees contribution to wards EPF & ESI th at s uch amounts are to be deposited on or before the due dates as per the respective Acts. 6. Though the tax effect involved in this case is bel o w the monetary l imits prescribed by the CBDT, the case is covered under exception 10(a) of CBDT Circul ar No.17/2019, ie., where the constitutio nal val idity of the provision of an Act or Rul e is under chal l enge, thereby giving right to the Dep artment to fil e further appe al . 7. For these and o ther grounds th at may b e urged at the time of appeal hearing, it is praye d th at addition made by the AO be restored.” 3. At the outset, the Ld. Departmental Representative submitted before us that this appeal may be withdrawn as the tax effect involved in the case is below Rs.50 Lacs. The Ld. AR did not object to the submission of the Ld. DR. 3 4. The CBDT vide Circular No.17/2019 dated 08.08.2019 has revised the monetary limit for filing the appeals before the Tribunal to Rs.50 Lacs. Further, CBDT vide letter dated 20.08.2019 has also clarified that Circular No.17/2019 would be applicable to all pending appeals. In such circumstances, the present appeal filed by the Revenue is not maintainable considering the low tax effect involved therein. It is ordered accordingly and the appeal of the Revenue is dismissed with a liberty to the Department to file a Miscellaneous Application before the Tribunal for recalling the order, if the requisite material is brought in to show that the appeal is protected by the exceptions prescribed in para-10 of the Circular dated 11.07.2018. 5. In the result, appeal of the Revenue is dismissed. Pronounced in the open Court on 29 th November, 2023. Sd/- Sd/- (दुåवूǽ आर.एल रेɬडी) (एस बालाकृçणन) (DUVVURU RL REDDY) (S.BALAKRISHNAN) ÛयाǓयकसदèय/JUDICIAL MEMBER लेखा सदèय/ACCOUNTANT MEMBER Dated :29.11.2023 OKK - SPS 4 आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the order forwarded to:- 1. Ǔनधा[ǐरती/ The Assessee – VVR Engineering, 36-53-4/1, NH-5 Road, Reddy Kancharapalem, Visakhapatnam – 530008, Andhra Pradesh. 2. राजèव/The Revenue – Deputy Commissioner of Income Tax, Circle- 3(1), 35, 50-92-35, Sankara Matam Road, Opposite Reliance Fresh, Beside Reliance Fresh, Near By Main Road, Madhuranagar, Dwaraka Nagar, Visakhapatnam, Andhra Pradesh – 530016. 3. The Principal Commissioner of Income Tax, 4. आयकर आयुÈत (अपील)/ The Commissioner of Income Tax 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, ͪवशाखापटणम/ DR, ITAT, Visakhapatnam 6. गाड[ फ़ाईल / Guard file आदेशानुसार / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam